Handbook of Research on Customer Equity in Marketing
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Handbook of Research on Customer Equity in Marketing

Edited by V. Kumar and Denish Shah

Customer equity has emerged as the most important metric to manage firm performance. This Handbook covers a broad range of strategic and tactical issues related to defining, measuring, managing, and implementing the customer equity metric for maximizing firm performance. Drawing upon the wisdom of a global pool of leading scholars, the book serves as a comprehensive and authoritative guide on customer lifetime value and customer equity for marketing researchers, practitioners, and students worldwide.
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Chapter 18: Implementing marketing return metrics in organizations

Donald E. Sexton


Marketing managers face pressure from outside their organizations – from customers with unparalleled abilities to find information on products and services and competitors with technologies that can provide superior products and services, all in an environment where the rules and expectations change every moment. Meanwhile, within their organizations, marketing managers face pressure from colleagues – managers in finance and in other functions who expect marketing actions that will deliver more positive results for revenue and for profits. One widely circulated study found that 24 percent of finance managers described marketing as ‘wasteful and unfocused’ and that 35 percent of senior managers considered marketing an expense rather than an investment (ANA, 2007c). No recent studies suggest that those attitudes toward marketing have changed.

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